She said: "Mortgage borrowing is growing at a slower pace than it has for the last few months, reflecting both the slowdown in housing market growth after the April spike and broader trends in the sector.

"Given the low interest rate environment and high levels of confidence during the summer, the strong credit growth can be interpreted as strong consumer sentiment."

Mortgage approvals so far this year are 2pc below last year's levels, according to the BBA.

The number of people remortgaging fell by 6pc in August to 23,940 compared with the same month in 2015.

However, the number of loans approved for remortgaging is 16pc higher this year compared with the same period last year, suggesting that consumers are taking advantage of attractive mortgage deals.

"[It gives] an indication of some of the underlying pressures that the MPC was responding to when it made this decision," said Ms Harding.

Brian Murphy, head of lending at the Mortgage Advice Bureau said new deals launched by lenders in the wake of the interest rate rate could spur demand in the coming months.

"We’ll need to wait until later in October to see how a combination of the market traditionally entering its busiest time of the year - coupled with the anecdotal evidence we’ve seen over the last month or so of increased remortgaging activity, will play out in the BBA’s next set of figures,” he said.